Performance of Islamic banks : do the frequency of Shariah supervisory board meetings and independence matter ?

Author

al-Sartawi, Abd al-Muttalib Muhammad Muslih

Source

ISRA International Journal of Islamic Finance

Issue

Vol. 11, Issue 2 (31 Dec. 2019), pp.303-321, 19 p.

Publisher

International Shari'ah Research Academy for Islamic Finance

Publication Date

2019-12-31

Country of Publication

Malaysia

No. of Pages

19

Main Subjects

Islamic Studies

Abstract EN

Purpose – This paper aims to investigate the relationship between the composition of Sharīʿah supervisory boards (independence and frequency of meetings) and the performance of Islamic banks in the Gulf Cooperation Council (GCC) countries.

Design/methodology/approach – The study developed a multiple linear regression model, and data were collected from the annual reports of 48 standalone Islamic banks listed in the GCC countries covering the period between 2013 and 2017.

Findings – The results showed a statistically significant and negative relationship between the composition of the Sharīʿah supervisory boards and the performance of Islamic banks.

Research limitations/implications – As the current study used only one indicator, that is Return on Assets to measure performance, it is recommended to expand the framework of this study, through the addition of market-based performance indicators such as Tobin’s Q.

Practical implications – This study recommends the GCC countries to follow a more proactive Sharīʿah governance model to strengthen their frameworks from both regulatory and non-regulatory aspects.

Originality/value – The study contributes to the Sharīʿah governance and Islamic banking literature relating to the GCC countries as previous studies gave no attention to the composition of Sharīʿah supervisory boards.

American Psychological Association (APA)

al-Sartawi, Abd al-Muttalib Muhammad Muslih. 2019. Performance of Islamic banks : do the frequency of Shariah supervisory board meetings and independence matter ?. ISRA International Journal of Islamic Finance،Vol. 11, no. 2, pp.303-321.
https://search.emarefa.net/detail/BIM-965293

Modern Language Association (MLA)

al-Sartawi, Abd al-Muttalib Muhammad Muslih. Performance of Islamic banks : do the frequency of Shariah supervisory board meetings and independence matter ?. ISRA International Journal of Islamic Finance Vol. 11, no. 2 (2019), pp.303-321.
https://search.emarefa.net/detail/BIM-965293

American Medical Association (AMA)

al-Sartawi, Abd al-Muttalib Muhammad Muslih. Performance of Islamic banks : do the frequency of Shariah supervisory board meetings and independence matter ?. ISRA International Journal of Islamic Finance. 2019. Vol. 11, no. 2, pp.303-321.
https://search.emarefa.net/detail/BIM-965293

Data Type

Journal Articles

Language

English

Notes

Includes bibliographical references : p. 318-321

Record ID

BIM-965293